At ease

Inflation expectations remain contained, meaning the battleready inflation fighters at the RBNZ can stay at ease for now. Nonetheless domestic interest rates have risen sharply in recent weeks, mostly on offshore developments. Markets are now pricing in almost a 50% chance of a rate hike by the RBNZ by the end of the year, and 2 year swap rates are back above 3%. But there is still a long way to go before market pricing accords with own view on how far interest rates will need to rise. This

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